Re: Strange bidder on this item

[mjmahon@aol.com (Michael J. Mahon)]

Matthew Russotto replied:

>In article <20031003205527.05023.00000242@mb-m18.aol.com>,
>Michael J. Mahon <mjmahon@aol.com> wrote:
>>
>>Well, one theory of bidding is that if you see something you
>>like that you are willing to pay $x for, then you immediately
>>(and finally) bid $x and wait to see if you get it.
>
>Great theory -- for sellers.  If everyone followed it, it would work,
>but people who don't follow it and get into a frenzy drive up the price.
>
>I think the theory that has proven out over time is that if you see
>something you like that you are willing to pay $x for, then you wait
>for the very end of the auction and bid $x for it.  Sniping works.
>
>(especially if the auction ends at 3am and the other snipers didn't
>stay up late enough :-) )

Yes, that's the bidding theory I use, too--I think of it as submitting
a single sealed bid which is only revealed at the end of the auction.
I use a sniping agent so that I don't have to actually "be there" at
the close.

I agree that this is a better strategy for bidders, as opposed to
sellers.

But the proxy strategy I describe is the one that is best supported
by eBay's built-in mechanisms, and by their "suggestions" to
bidders.

It is clear from reviewing completed auctions that many people,
even quite experienced ones, do not follow either of these
strategies, preferring to get emotionally involved with a robot
proxy system and "plink" their bids up incrementally.

-michael

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